The holiday shopping season begins on Friday with discounts and promotions from retailers, but companies worry about a spending slowdown that might hurt sales following Thanksgiving and during the holidays.

A strong labor market and rising wages have helped shoppers survive, but they are under additional strain from shrinking savings, rising credit card debt, and relentless inflation.

Walmart and Best Buy reported worse customer spending in their recent quarterly reports, with Walmart noting October sales declines and Best Buy claiming shoppers are buying cheaper TVs.

The National Retail Federation expects shoppers to spend more this year than last, albeit at a slower pace due to economic uncertainty.

The association expects November-December U.S. holiday sales to jump 3% to 4%, up from 5.4% last year.